5.1.1. Benefits of ODR

ODR offers a more accessible, transparent and faster option, particularly for companies dealing with high volume and low value transactions done online. With more Indians transacting online, the timing is right for ODR to gain acceptance as an easy mechanism to resolve grievances. Other benefits include:

♤ Reduction in pendency of cases: 4.56 million and 31.5 million cases are pending in high courts and district courts respectively according to National Judicial Data Grid (NJDG).

♤ Focus on complex cases: It has the potential to reduce high volume of disputes outside the courts and allow courts to focus more on complex or high public interest cases and provide accessible, affordable and expedient justice.

♤ Ease of Doing Business: Enabling ODR will help to move up the Ease of Doing Business ranking and enhance the enforceability of contracts. E.g. a case that would take six months via arbitration is being settled in 30 days through ODR.

♤ Consumer satisfaction: ODR is the best option for enhancing the redress of consumer grievances, strengthening their trust in the market.

♤ Environmental benefit: ODR has made possible to carry on proceedings in an ‘electronic room’, this led to reduce the travel related carbon footprints.

Do we need a separate law for ODR? There is nothing in the law that prohibits ODR. We don't need to have an amendment to the Arbitration Act per se, arbitration can be done on an electronic platform. If it can happen face to face, it can certainly happen remotely on a digital platform.